The steadily growing illicit tobacco trade in France is causing concern as on top of the rising numbers, local and European authorities do not seem to have explicit answers for how to fight it.
According to a study funded by tobacco company Philip Morris International, in 2022 most EU member states experienced a decline or at least steady illegal tobacco consumption, with France bucking the trend.
“The increase in EU illicit consumption was predominantly due to France (+1.8 billion cigarettes), which now accounts for almost half (47%) of EU27 illicit consumption”, the report said.
In 2021, illicit trade in France accounted for 29% of the total consumption (15.1 billion cigarettes) while in 2022, the number increased to 32% (16.9 billion cigarettes).
And the reasons behind this are not clear.
Some attribute rising illicit trade to excessive taxation as several years ago, France became the first EU country to impose a considerably higher excise tax on tobacco than the EU average – €6.61 compared to €3.34.
Another country supporting this argument is Ireland, which currently has the highest excise tax on tobacco (€8.85) and ranks second in illicit tobacco trade in the EU (24%).
Others disagree, arguing that increased taxation leads to reduced smoking rates. Greece is a case in point, as its low excise taxes do not translate into decreased illicit trade.
Greece has imposed a €2.74 excise tax, below the EU average, but in 2022 it was the third worst EU country in illicit tobacco trade (21%), although it improved compared to 2021 (24%).
The French deadlock
Alarmed by the situation, French Deputy Minister for Public Accounts Gabriel Attal warned in June that tobacco trafficking sets new records every year.
“Faced with the explosion of these trafficking activities, we cannot let France be overwhelmed by illicit tobacco. Trafficking is not only accelerating but also undergoing profound changes,” he said.
In 2021, he added, for the first time four clandestine tobacco production factories were dismantled “within our own territory” in France.
Attal explained that “one euro for a tobacco trafficker is one euro for mafia networks and criminal organisations” and vowed to target traffickers with specific measures such as investing in additional detection scanners as well as sniffer dogs.
However, the measures have not yet resulted in tangible results.
Asked about the reasons behind the worsening situation, the French customs declined to comment on an “industry survey”.
“In response to your request, we would first like to inform you that French Customs does not comment on estimates made on behalf of the tobacco industry,” the French customs told EURACTIV.
It stressed that the fight against illicit tobacco trafficking is a priority, in line with the national action plan against illicit tobacco trafficking 2023-2025, which Attal presented in December 2022.
As part of this plan, the French Customs said, “work will be undertaken to improve the level of understanding, analysis and estimation of the parallel market in tobacco products”.
“For the record, in 2022, the French customs services seized nearly 650 tonnes of tobacco, including more than 473 tonnes of cigarettes, in the course of nearly 17,000 offences. The value of goods seized on national territory, all products combined, amounted to more than €213 million for the same year”, the customs added.
EU missing the full picture
However, it’s not clear how many of these seized products bear an EU track and trace code.
Established in 2020, the EU track and trace system aims to fight illegalities within the “legal” tobacco production chain: from the factory production to the retailer.
In practice. this means that any fraud outside the legal chain is not identified and therefore, the EU still lacks the overall picture of the situation when it comes illicit tobacco trade.
The European Anti-Fraud Office (OLAF), which has played a leading role against tobacco smuggling activities in the EU and worldwide, does not have data either.
“We are not in a position to provide data or assessments concerning specific countries,” OLAF’s press office told EURACTIV.
RAND Europe, a research institute, was commissioned by OLAF to develop an independent methodology to measure the illicit market for tobacco.
So far, there has been no EU-wide methodology or relevant study.
“OLAF works closely with the national authorities of all EU member states – including of course the French authorities, with whom OLAF has long-standing cooperation in the fight against tobacco smuggling – as well as third countries and international actors such as Europol,” OLAF’s press office added.
Davide Basso from EURACTIV France contributed to this reporting.
(Sarantis Michalopoulos – Edited by Zoran Radosavljević | EURACTIV.com)
Read more with EURACTIV
MEPs to vote on multi-million euro building following lengthy political rowEU lawmakers are set to vote on a plan to lease and potentially buy a building next to the European Parliament in Strasbourg following a lengthy – and increasingly bitter – battle between the Parliament’s leaders.
Source: euractiv.com
